Employment Law

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Employment Law

At GJC, our experienced team of employment contract lawyers is ready to offer comprehensive and efficient services to corporate and individual clients on the drafting and vetting of employment contracts, the resolution and settlement of employment contract issues and the structuring of employee incentives, benefits and compensation schemes.

The following offers a short summary of the underlying areas covered by our employment contract practice and the manners in which we are best able to assist our clients’ diverse needs and backgrounds.

Drafting and vetting of Employment Contracts

Our lawyers are well versed on the needs and objectives of multinational companies, SMEs and individual clients in relation to the requirements of Singapore employment laws and to advise on the drafting of employment agreements. Moreover, given our combined knowledge in Singapore employment law, GJC is well positioned to offer efficient and comprehensive services to our diverse clients base regarding the strategic arrangement and efficient structuring of employment benefits, severance and retrenchment.

Visa, Employment Pass and Permanent Residence Applications

As a full-fledged Singapore law firm, GJC is able to advise both corporate and individual clients on various visa and Employment Pass applications and the best manner to obtain Singapore Permanent Residency.

Resolution and Settlement of Employment Contracts and Related disputes

Our dedicated team of Employment lawyers can also assist both business employers and individual employees in dealing with the termination and/or settlement of an employment contract. Our team has a substantial experience in working with senior executives to manage, settle and resolve termination of employment and related employment disputes.

International & Cross-Jurisdiction Employment Matters

As an hub for International trade and commerce, Singapore has a substantial expatriate population from around the world. Our GJC team with its diverse background and international outlook takes pride in advising our clients to best structure contracts for employers or executive level employees for secondments, permanent or short term assignments, transfers and other relevant cross jurisdiction arrangements, taking into consideration challenging issues such as taxation and immigration requirements.

Amendments to the Singapore Employment Law Act

As effective from1 April 2014, we would like to highlight some important changes to employment law in Singapore that may affect your organisation’s employment policies and practices.

These changes came about on 11 November 2013 when the Parliament passed the Employment, Parental Leave and Other Measures Act 2013 (“the Act”). The Act brings some key changes to the Employment Act (Cap.91) in order to enhance employment protection for workers and employment flexibility for employers.

Old Position

New Position after 1 April 2014

Organisations that have employees in Professional, Managerial and Executive (“PME”) roles earning a basic salary of $4,500 or less are only regarded as an employee for the purposes of certain sections under the EA.

“PME” employees which earn a basic monthly salary of up to $4,500 are now covered under the general provisions of the EA

Non-workmen employees (e.g. clerical staff) that earn a basic monthly salary of up to 2000 are covered under Part IV of the EA.

The qualifying salary threshold has been revised up to $2500 for those to be covered under Part IV of the EA.

Employee Rights

Non-workmen employees earning up to $2000 are statutorily obliged to be paid for overtime work.

The qualifying salary threshold has been amended so that for those earning between $2001 and $2500 will now be able to claim for overtime work done. However, the overtime rate payable of non-workmen is capped at $2,250.

PME Employees who are terminated in line with the terms of their employment contract had limited recourse.

PME employees earning up to S$4,500 who have serves with the same employer for at least 12 months can seek redress against unfair dismissal where notice is given.

A 50% cap on total authorised deductions from employees’ salaries.

Any deductions cannot exceed 25% of the employee’s salary for accommodation, amenities, or services rendered in any one salary period. This sup-cap is within the current 50% total cap for authorized deductions.

Enforcement

An employer that fails to pay salaries will face a fine not exceeding $5,000 or up to 6 months’ imprisonment for the first offence.

The penalty for failure to pay salaries is increased. For the first offence, not less than $3,000 and not more than $15,000 and/or imprisonment for up to 6 months.

The cap for maximum composition fine was $1,000.

The maximum composition fine is now $5,000.

Should you have any questions or need legal representation, kindly contact Gloria James-Civetta & Co on +65 6337 0469 or email to consult@gjclaw.com.sg